had a look at EUR/CHF as an experiment.......
started with AUD100k = CHF83,300
1.20-1.21 buys only; 1.2125-1.2525 buys and sells; 1.2550-1.2650 sells only
buy and sell 0.5 lot every 25 pips
test period 10 Jan - 18 Jan 2013; H1 chart manually
this period not favourable for this ranging system; price went up almost 500 pips in 7 days!
when to start trading is very important: best in the middle of the price range, say 1.2300 for lower initial DD to build up some profits,
so to start @ 1.2125 is the worst example.
start buy/sell @ 1.2125 on Jan 10th.
on Jan 18th highest price is 1.2569
36 closed trades with a profit ex spread and commission of CHF4,246
at high on Jan 18th: 18 sell positions - 1 buy position
@ 1.2569 DD is CHF20,740 = 24%
after this period price is ranging for a long time until a new high of 1.2650 on May 22nd 2013
and after this again up until today.
to close 36 trades in 7 days is exceptional.
with the present low daily ATR of 21 pips, I don't think it is wise to set your trades 25 or 50 pips apart.
presently I`m thinking of 50%-75% of daily ATR with a lower position size.
started with AUD100k = CHF83,300
1.20-1.21 buys only; 1.2125-1.2525 buys and sells; 1.2550-1.2650 sells only
buy and sell 0.5 lot every 25 pips
test period 10 Jan - 18 Jan 2013; H1 chart manually
this period not favourable for this ranging system; price went up almost 500 pips in 7 days!
when to start trading is very important: best in the middle of the price range, say 1.2300 for lower initial DD to build up some profits,
so to start @ 1.2125 is the worst example.
start buy/sell @ 1.2125 on Jan 10th.
on Jan 18th highest price is 1.2569
36 closed trades with a profit ex spread and commission of CHF4,246
at high on Jan 18th: 18 sell positions - 1 buy position
@ 1.2569 DD is CHF20,740 = 24%
after this period price is ranging for a long time until a new high of 1.2650 on May 22nd 2013
and after this again up until today.
to close 36 trades in 7 days is exceptional.
with the present low daily ATR of 21 pips, I don't think it is wise to set your trades 25 or 50 pips apart.
presently I`m thinking of 50%-75% of daily ATR with a lower position size.